(Yicai Global) Nov. 23 -- Shanghai municipal government will set up a high-tech incubation space, complete with funding, tax breaks, and help with patents.

Shanghai Science and Technology Committee will support local science and tech firms through the establishment of a high-tech cultivation library, Zhang Quan, director of the committee said at a press conference where the municipal authority released a plan of the hub.

Firms may apply for financial support valued between CNY200,000 (USD28,800) and CNY2 million (USD288,000), which comes from the fiscal funds of district governments in Shanghai, said Yuan Baiwei, an inspector at the Shanghai Municipal Finance Bureau. These companies may also enjoy tax breaks that can reach up to 75 percent of their research and development costs.

In order to qualify, corporations must have independent intellectual property rights to their products, put at least 3 percent of their revenues to R&D, and have at least 40 percent of their income coming from high-tech goods and services.

Pudong-registered firms that function in the fields including biomedicine, semiconductors, neuroscience, and artificial intelligence, can use the fast channel in China Pudong Intellectual Property Rights Protection Center to shorten their patent application processes.

The protection of intellectual property rights is inevitable for Chinese enterprises to go global, Yin Jie, the managing partner of Shanghai Guohe Capital, said to Yicai Global.

A representative called Chen from medical tech firm HiCling Technology said that the company applies for more than 10 patents every year, but it takes three years to get approvals. The fast lane for patents will have a great impact on high-tech firms, he added.